New Zealand real estate is on the upswing currently in line with the rest of the international real estate market. However, the transaction cost here is comparatively low than the rest of the international market. While the prices for the real estate in New Zealand dipped in the first 2 months of 2010, it recovered quickly in the later months. Statistics for the New Zealand real estate for sale shows that prices for the houses were up by about 4. 8% on a YOY in April 2010. Auckland has seen the highest jump and the prices in April 2010 were up to near about 7. 4%. Even though, the news for the New Zealand real estate listings is extremely positive, there is bound to be a slowdown and a downward pressure on the prices since the interest rates have been hiked. In June this year, the Reserve Bank of New Zealand has hiked the interest rates by 25 basis points or 0. 25%. This has made the home loans more costly and the housing loans approvals have gone down. The current interest rate after the hike stands at 2. 75%. The government ahs further taken a decision to remove the depreciation deductions that the investor could claim for the properties that they invested in. this decision was made during may this year and will be implemented starting April 2011. Non residents are allowed to purchase the New Zealand estate for sale. However buying the New Zealand real estate doesn’t make them eligible to live permanently in New Zealand. The investment in New Zealand real estate is extremely attractive and the prices are still about US$3600 approximately per square meter. This translates as a yield of around 7% for the investor especially for the real estate in New Zealand located in Auckland and other cities. New Zealand is considered to be an extremely stable country, with strong economic fundamentals and very high rate of immigration and most investors are happy to get these conditions when they invest long term in the real estate. In Auckland currently, a 50 square foot apartment will cost the investor US$ 250,400. While the prices for the real estate in New Zealand for other cities such as Wellington and Christchurch are also quite high. While the New Zealand rentals for Christchurch are not as attractive as Auckland and stand at around 4% only. When buying real estate in New Zealand, the transaction cots are relatively low as compared to the rest of the international real estate transaction costs. The seller pays for all the agents’ commission. The transaction costs are quite low and are in the range of 4. 2% – 5. 8%.